If you are just getting your first car, whether you're 16 or 45, you may or may not know about car insurance.
The first thing to know is that having some form of auto insurance is your legal responsibility. (There are alternatives in some states, but most people find that getting auto insurance is the easier option.) If you're under 18, it's likely your parents are paying for it, but you should know about it. It will be your responsibility one day, and you want to be prepared for it when the day comes. If you have a family that's willing to talk about money, you can even find out how much your parents are paying - though if you are 16, it's probably as high as it's going to be. If you're a typical driver who has few accidents or tickets, your insurance is likely to go down over time.
Why is it mandated? When you drive a car, you are operating heavy machinery. Cars are dangerous and can cause damage to people and property. Because of this potential for injuries and damage, you are required to insure your vehicle so that, if such a thing does happen, you will be able to be responsible financially for fixing the damages you are liable for.
This is why it's important for everybody to have car insurance. If someone hits you, then their car insurance typically covers the damages to you. Everyone having insurance (or mostly everyone) helps protect everybody.
Now, there are many options for car insurance. The most basic is liability insurance, which just covers damage that you do to other people or property. It's typically the bare minimum insurance required in the state.
In addition to liability, you can often add on things like roadside assistance. Some auto insurance places also let you bundle with renters' or homeowners' insurance, as well as bundling multiple cars, which reduces your cost overall.
There's also full coverage insurance. If you buy a car and are making payments on it, whether the car is new or used, you are probably required by the financing agency to carry full coverage. Full coverage just covers most (though, despite the name, not all) situations. It covers damage to your own vehicle when you've been in an accident that's your fault, whereas liability coverage often does not. Full coverage often includes uninsured driver insurance, so if you do get into a car accident with someone who doesn't have insurance, you're not out of luck.
It doesn't matter if you're 16 or 68; you should definitely read any auto insurance policy you get very closely. You will want to understand exactly what it's covering so that you can make sure you get the options that are right for you.
To learn more, contact an auto insurance company.
